Technology companies have been hammered throughout the year, with Paypal’s share price leading the pack. Looking at the year-to-date data, Paypal’s share price has dropped by 64 per cent and has continued with the strong bearish trend into July.
Why Is Paypal Going Down?
The US stock market continues to slip as recession fears continue to grip Wall Street. According to data released this week, the inflation rate for June stood at 9.1 per cent. This is the highest level that has been recorded in the past 40 years, raising fears of a looming recession in the markets. The result has been a decrease in the price of stocks, with some of the most affected stocks being in the technology industry.
There are also fears that the Fed will hike the interest rate by 100 basis points. According to data from CME Group’s FedWatch tool, there is a 48 per cent chance of the Fed rate hike late this month. The data also shows a possible hike in September. These factors, and the fear that we may be going into a recession, have contributed to the recent downturn in Paypal and other technology share prices.
Paypal share price analysis
At press time, Paypal is up by 2 per cent. The surge comes within the first hour of the trading session, and there is a high likelihood that we will see the prices continue with the bullish trend throughout the day.
Therefore, my Paypal price expectation is for the prices to continue rising in the next few trading sessions, with a possible price level of $75 being hit. We are likely to also see the prices break out of the $75 resistance level. My Paypal share price analysis is purely technical and based on what I can see in the charts. Combining current market conditions shows the trend is still bearish.